Farmers advised to tread carefully on mast site sales

Farmers considering selling land used for telecoms masts have been urged to tread carefully amid growing interest from mobile operators and infrastructure investors in buying the land.

Property experts say more landlords are being approached to sell their mast sites following changes introduced under the 2017 Electronic Communications Code (ECC), which reduced rental returns for many site owners.

Farmers and landowners are therefore being advised to seek specialist advice and to test the market thoroughly before agreeing to any deals.

See also: Farmers challenge rule changes to phone mast deals

Oliver Sinclair, surveyor and telecoms specialist at property consultancy Galbraith, warned farmers against accepting early offers without exploring wider options.

“Seeking to capitalise on mast values rather than facing a fall in rental income is perfectly understandable, but often is not the only or right option,” he said.

Below market value

Mr Sinclair said operators and investors often presented purchases as a way to reduce hassle and provide certainty for landlords, but initial offers may fall well below the true market value.

“Often, these offers are substantially lower than what could be achieved in the market,” he said.

“Initial offers are often not the best available, and for both sides of a bargain, testing the market can materially improve outcomes.”

The ECC reforms changed the balance of power between landlords and telecom operators, making it easier for networks to secure site rights while reducing payments linked to mast agreements.

Business implications

According to Galbraith, operators are increasingly looking to secure long-term control of mast locations to support future network expansion and reduce the risk of sites being lost to redevelopment.

Farmers are advised to consider the wider business implications before selling, including future diversification or development opportunities, tax liabilities, and the long-term balance between rental income and a lump-sum payment.

Mr Sinclair said decisions should be based on individual business objectives rather than on pressure from legislative changes.

“Above all, landowners should obtain specialist professional advice – valuation, legal and tax – before agreeing terms, particularly given the technical nature of the Electronic Communications Code and recent legislative changes,” he added.